If cross-price elasticity of demand between two goods is positive, the two goods are:
A. substitutes.
B. complements.
C. normal.
D. inferior.
Answer: A
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A union contract requiring elevator operators in a building with automatic elevators is an example of
A) a closed shop. B) featherbedding. C) a lockout. D) a right-to-work requirement.
Suppose you're in the trucking business and you purchase a $100,000 truck with a one year loan for the full amount. Ignoring interest payments, what is your fixed cost per month?
a. $10,000 b. $20,000 c. $25,000 d. $12,000 e. $8,333
The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that when this market reaches equilibrium, the marginal
a) cost equals marginal benefit. b) benefit exceeds marginal cost. c) cost exceeds marginal benefit. d) cost equals zero.
Using the theory of wage determination, explain why wages in developing countries, where levels of capital are small, are typically quite low